Pakistan Telecommunication Company Limited reported a significant financial turnaround for the six months ended June 30, 2026, posting a consolidated net profit of Rs4.67 billion. The result marks a complete recovery from the Rs9.90 billion net loss the company recorded during the same period last year, reflecting a sharp reversal in the company’s overall financial position.
The company’s earnings per share turned positive as a result, reaching Rs0.92 compared to a loss per share of Rs1.94 during the corresponding period in 2025. The primary driver behind this recovery was strong revenue growth paired with improved gross margins, with revenue rising 62 percent year on year to Rs201.67 billion from Rs124.60 billion. Although the cost of services also increased by 55 percent to Rs129.78 billion to support the higher business activity, the scale of revenue growth still pushed gross profit up by 76 percent, reaching Rs71.88 billion compared to Rs40.78 billion in the same period last year.
On the operational side, overhead costs also expanded to accommodate the company’s larger scale of business, with administrative and general expenses rising 78 percent to Rs29.81 billion, while selling and marketing expenses grew 38 percent to Rs10.09 billion. The company also benefited from a positive reversal in expected credit losses of Rs27.32 million, a sharp turnaround from the Rs6.89 billion allowance charge it absorbed during the same period last year. These combined factors helped operating profit more than triple, rising 226 percent to Rs32.00 billion.
Below the operating line, the company found additional relief through a 94 percent drop in past service pension costs, which fell to Rs355.14 million from Rs5.89 billion the previous year. Finance costs and other expenses remained a significant burden, rising 20 percent to Rs30.49 billion, while other income saw a mild 6 percent decline to Rs8.27 billion. Even so, the overall operational gains were large enough to outweigh these debt servicing pressures, pushing profit before tax to Rs9.43 billion, compared to a pre-tax loss of Rs12.71 billion during the same period last year. After accounting for an income tax expense of Rs4.76 billion, compared to a tax credit of Rs2.81 billion in the prior year, the company closed the first half of 2026 with a final net profit of Rs4.67 billion, marking its return to profitability after a difficult comparative period.
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